Aspen Dental Management, a New York-based leading dental support organization (DSO), has announced it is acquiring ClearChoice Management Services, significantly expanding its footprint. The deal is valued at approximately $1.1 billion, according to sources cited in PE Hub. The deal is essentially a trade between private equity firms: Aspen Dental is backed by Ares Private Equity Group and Leonard Green & Partners L.P., and ClearChoice is a portfolio company of Sun Capital Partners, Inc., which is exiting its investment.
ClearChoice is a leader in providing high-quality administrative practice management services to the network of ClearChoice Dental Implant Centers. With a current footprint of more than 60 locations, ClearChoice Dental Implant Centers are leaders in fixed, full-arch dental restorations for patients with missing or failing dentition. ClearChoice’s growth has outpaced other players with an annual growth rate of over 20%. The acquisition is expected to close by the end of 2020.
Based on search results in our Healthcare Deal Database, this looks to be the first deal for Aspen Dental and Ares Private Equity since the two partnered up. Back in June 2017, Ares Private Equity (then known as Ares Management, L.P.) and Leonard Green & Partners purchased the DSO from American Securities, LLC for an undisclosed sum. At the time of the deal, Aspen Dental had more than 600 locations in 36 states. With the addition of ClearChoice, Aspen Dental will have more than 900 locations nationwide. The company also has more than 45 WellNow Urgent Care offices in New York and Illinois.